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Jeff Cooper: Is the Nasdaq Headed Lower?


Charts show that the index's pattern since March mirrors the four-month interval of the 2008 to 2009 bottom.

This article originally appeared on Jeff Cooper's Daily Market Report. To get Jeff's commentary plus day and swing trading ideas each day, take a FREE 14-day trial to Jeff Cooper's Daily Market Report.

A monthly Nasdaq Composite (INDEXNASDAQ:.IXIC) chart from this morning's Daily Market Report [subscription required] shows a second test of the low of the high bar month from March 2000:
Click to enlarge

There is also a confluence of some interesting geometry. I started with trend line A (green) and paralleled a trend line from the 2010 and 2011 lows, which also ties to the 2002 and 2009 lows.

Trend line A coincides with the March high, suggesting the recent Nasdaq Composite high is a return rally test here in July. The pattern since March mirrors the four-month interval of the 2008 to 2009 bottom. As above, so below? Moreover, the pattern high in 2000 was a March high followed by a return rally into July.

Additionally, last week's 4,478 recovery high on the Nasdaq Composite ties to a possible time-and-price July square-out. Reducing the number to 448 shows that early July is 90 degrees square 448.

See the Square of 9 Chart below:
Click to enlarge

If you covered up the name and time frame and were told the above chart were a daily chart of a highflier, I suspect most of you would be sellers, recognizing a possible A-B-C retracement to prior highs.

Twitter: @JeffCooperLive
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